First Trust Correlations

FGD Etf

USD 23.45 0.06 0.26%

The current 90-days correlation between First Trust Dow and First Trust STOXX is 0.89 (i.e., Very poor diversification). The correlation of First Trust is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

First Trust Correlation With Market

Very weak diversification

The correlation between First Trust Dow and DJI is 0.51 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Dow and DJI in the same portfolio, assuming nothing else is changed.

Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in First Trust Dow. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in price.

Moving together with First Etf

0.8	EFV	iShares MSCI EAFE Sell-off Trend	Pair Corr
0.9	FNDF	Schwab Fundamental	Pair Corr
0.87	VYMI	Vanguard International	Pair Corr
0.86	IDV	iShares International	Pair Corr
0.79	DFIV	Dimensional International	Pair Corr
0.77	IVLU	iShares Edge MSCI	Pair Corr
0.91	RODM	Hartford Multifactor	Pair Corr
0.85	PXF	Invesco FTSE RAFI	Pair Corr
0.83	HDEF	Xtrackers MSCI EAFE	Pair Corr
0.95	PID	Invesco International	Pair Corr
0.76	T	ATT Inc Aggressive Push	Pair Corr
0.72	KO	Coca Cola	Pair Corr
0.71	CVX	Chevron Corp	Pair Corr
0.68	IBM	International Business Sell-off Trend	Pair Corr
0.7	MCD	McDonalds	Pair Corr
0.85	VZ	Verizon Communications Sell-off Trend	Pair Corr
0.82	DD	Dupont De Nemours	Pair Corr
0.84	JNJ	Johnson Johnson	Pair Corr

Moving against First Etf

0.32	USD	ProShares Ultra Semi	Pair Corr
0.5	MRK	Merck Company Aggressive Push	Pair Corr

Related Correlations Analysis

	FDD	FDL	DWX	DTH	EDIV
FDD		0.73	0.7	0.98	0.76	FDD
FDL	0.73		0.94	0.8	0.71	FDL
DWX	0.7	0.94		0.79	0.79	DWX
DTH	0.98	0.8	0.79		0.81	DTH
EDIV	0.76	0.71	0.79	0.81		EDIV
	FDD	FDL	DWX	DTH	EDIV

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First Trust Constituents Risk-Adjusted Indicators

There is a big difference between First Etf performing well and First Trust ETF doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze First Trust's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
FDD	0.68	0.20	0.24	0.37	0.58	(0.77)	1.78	(1.29)	3.96
FDL	0.56	0.07	0.09	0.14	0.74	(0.53)	1.27	(1.17)	3.63
DWX	0.46	0.04	0.08	0.06	0.58	(0.50)	0.98	(0.86)	2.85
DTH	0.55	0.11	0.16	0.27	0.62	(0.58)	1.17	(1.00)	3.54
EDIV	0.48	0.01	0.04	0.00	0.61	(0.54)	0.82	(0.75)	3.04

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